This section contains the nature of the case and procedural background.

National Biscuit (P) issued a summons against C. N. Stroud and Earl Freeman, a partnership trading as Stroud's Food Center, for the nonpayment of $171.04 for goods sold and delivered. The Justice of the Peace rendered judgment for P against both Ds for $171.04 with interest and costs. Stroud (D) appealed to the Superior Court: Freeman (D1) did not. Stroud and Earl Freeman entered into a general partnership to sell groceries under the name of Stroud's Food Center. P sold bread regularly to the partnership. Several months prior to February 1956 D advised an agent of P that he personally would not be responsible for any additional bread sold by P to the partnership. At the request of D1, P sold and delivered bread in the amount of $171.04 to Stroud's. Ds by agreement dissolved the partnership at the close of business on 25 February 1956, and notice of such dissolution was published in a newspaper in Carteret County 6-27 March 1956.

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